Published by MBA Skool Team, Last Updated: January 22, 2022
SWOT analysis of Nintendo analyses the brand by its strengths, weaknesses, opportunities & threats. In Nintendo SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Nintendo to benchmark its business & performance as compared to the competitors. Nintendo is one of the leading brands in the consumer electronics sector.
The article below lists the Nintendo SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Nintendo SWOT Analysis:
For Nintendo, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Nintendo looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Nintendo :
1. Nintendo is an established brand in video games which gives it a great competitive advantage
2. The basic strategy of ‘Gaming Population Expansion’ to provide a wider customer base in future
3. Nintendo has a strong brand reputation and recognition unlike some of the new mobile gaming companies
4. The company has a unique and innovative product offerings with latest games
5. Geographical diversification has reduced the business risk of the company
6. Innovative and simple game-play using a mixed of motion sensitivity and aiming device was pioneered by Nintendo
7. Affordable gaming options for people of a variety of economic classes makes it popular
8. Nintendo company has more than 5000 employees and a revenue of more than $15 billion annually
9. Nintendo Switch Online (NSO) provides users gaming on cloud with a great experience
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Nintendo SWOT Analysis:
1. High dependence on few gaming titles unlike a few leading competitors
2. Nintendo brand hasn't established itself in the emerging economies
3. Limitations of enforcing intellectual property rights in some regions has led to growth of counterfeit products
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Nintendo SWOT Analysis:
1. Expansion of digital business by offering downloadable paid add-on content and digital distribution of packaged software
2. Increasing focus on third party software development will benefit Nintendo due to its relatively simple technology and low development costs
3. Expanding demographics of gaming consumers
4. Technological innovations set to improve gaming experience, which can be tapped for growth
5. Enhanced Wi-Fi capabilities can help make inroads in the online gaming sphere
6. Significant R&D capabilities can be employed to diversify in to related fields, especially VR gaming
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Nintendo are as mentioned:
1. The growing trend of online and mobile gaming can prove to be a threat to both, the handheld and console gaming
2. Changing industry environment can affect the business margins
3. Lack of diversification outside the video games design field
4. High proportion of overseas sales has exposed the company to risks relating to fluctuation in foreign exchange rates
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Nintendo:
Now you're playing with power; Wii would like to play; Take a look inside
Motion sensing technology and simple controller design to appeal to the inexperienced console gamers.
Activity oriented gaming consoles and handheld mobile gaming devices
Urban kids and families from the upper middle class
Social and active entertainment that brings the whole family together and supports movement and exercise.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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